Shares of JCPenney dropped 25% in early trading Wednesday after missing Wall Street's estimates.
The reatiler also slashed its full-year guidance.
"Inventory receipts continued to outpace total sales performance this quarter due to prior purchase commitments," said Chief Financial Officer Jeffrey Davis.
Shares of JCPenney plunged as much as 25% in pre-market trading on Wednesday following the retailer's second-quarter earnings report, which fell short of Wall Street's expectations. The company also slashed its full-year forecast.
For the fiscal second quarter ended, JCPenney reported a loss of $0.32 per share, which was bigger than the Wall Street estimate of a $0.05 loss per share.
Looking ahead, the company downgraded its full-year guidance and now sees adjusted loss per share of $0.80 to $1 for the period, way down from its prior forecast of $0.07 to $0.13.
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"Inventory receipts continued to outpace total sales performance this quarter due to prior purchase commitments," said Chief Financial Officer Jeffrey Davis in the earnings release.
"As such, we took necessary actions to markdown and clear excessive inventory positions across many of our categories, which encompasses more than just seasonal product or fashion misses," said Davis. "We will continue to take actions to right-size our inventory, better curate our assortment and most importantly, provide a solid foundation that we can continue to build upon as we move forward."
Shares of the company are down more than 35% since the beginning of 2018.
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